Letter: Supports new retirement savings program for employees

Tuesday

Mar 4, 2014 at 1:03 AM

I find it unfortunate that Kim Clarke Maisch and Phil Lackman (Feb. 27 column) would oppose the idea of small businesses providing their employees with easy access to retirement savings accounts, particularly since the legislation in question makes no demands on the employer with regards to administration of the accounts.

The state is not “investing the retirement dollars of private sector workers” with Senate Bill 2758 and House Bill 4595. The board created by the legislation would select a private investment firm to invest the funds. The bill does not require employers to adhere to ERISA requirements due to what the Department of Labor considers a “payroll deduction” exception.

Yes, there are a lot of financial advisers who would love to set up retirement accounts for the 2.5 million Illinoisans who don’t currently have access to a retirement savings account at work — but the reality is that these often require a substantial initial deposit to get started.

Even more, over 71 percent of workers participate in a retirement savings plan when it is offered by their employer — and less than 5 percent save if their employer does not offer a plan.

SB2758/HB4595 simply aims to allow these workers the opportunity to take charge of their financial futures and live independently as they age, relying less on government safety net programs.

For the sake of our state’s financial future and for the security of 2.5 million Illinoisans, it’s time for the Illinois Secure Choice Savings Program.